Apple is apparently forfeiting around $1 billion (€923 million) annually with its streaming platform. The final episode of the show’s second season, which has been a major success, is set to premiere soon.

Severance

‘ premiering this week, it serves as a harsh criticism of the technology company’s rival to Netflix.’

Two sources familiar with the matter told The Information that the technology company has been spending approximately $5 billion (€4.62 billion) annually on Apple TV+ since its inception in 2019.

Apple’s substantial investment in the video streaming sector has not yielded an equivalently large user base. Even with popular series such as ‘Severance’ and ‘

Ted Lasso

‘, it falls considerably short of its rivals Netflix, Amazon Prime Video, and Disney+’.

Netflix boasts the highest subscriber count with more than 300 million members. In contrast, Amazon Prime Video follows a somewhat distinct approach by permitting non-members to rent and purchase specific movies and shows; it reportedly has approximately 200 million subscribers. Additionally, Disney+ is believed to have roughly 125 million subscribers under its belt.

Even though Apple has not disclosed its specific number of subscribers publicly, considering they do not list it separately from their other offerings such as Apple Pay, The Information estimates this figure to be around 45 million subscribers.

Considering Apple is among the largest corporations globally, things seem to be going terribly awry with the company’s venture into video streaming services.

It isn’t as though they haven’t invested truckloads of money into fantastic productions. Primarily, there’s ‘Severance.’ This dark science fiction series, which revolves around office employees with divided psyches, received 14 Emmy nominations following its debut season in 2022. Produced by Ben Stiller, the show made a comeback this year and swiftly found itself competing for top honors along with ‘The White Lotus’ and ‘

Adolescence

’.

Likewise, Apple has achieved success with programs such as ‘Ted Lasso’, a cheerful soccer-themed show, and ‘The Morning Show’, which satirizes television news broadcasts. According to Tim Cook, Apple’s CEO, their exclusive content across various platforms has garnered over 2,500 nomination awards and secured 538 victories as of January.

In terms of movies, Apple has also made significant strides. They have reached their initial success.

Best Picture

emerge victorious at the Oscars with
CODA
It has since backed several renowned filmmakers in crafting daring projects aimed at the awards season, such as Martin Scorsese’s.
Assassins of the Flower Moon
, Ridley Scott’s
Napoleon
, and Steve McQueen’s
Blitz
.

Nevertheless, all this funding isn’t resulting in more subscribers. Apple sees its investment going right down the drain.

Water cooler television

Much of the issue stems from Apple TV+ apparently lacking sufficient social cachet. Big-name celebrities join high-budget productions only for these shows to end up on the platform with insufficient promotion, failing to generate the level of buzz typically associated with an HBO launch.

“Water Cooler Television” is an industry term used for shows that make such a significant cultural impact that they invariably turn into office conversations the following day worldwide.

Classic instances of watercooler TV include the high-budget productions from the early 2000s such as ‘The Sopranos’, ‘Breaking Bad’ and more recently ‘Game of Thrones’.

Succession

‘. Over its many years of established fame and its consistent weekly programming, HBO has excelled at seizing the fleeting nature of a water cooler moment.

‘Severance’ marks Apple’s first series that has achieved a similar degree of cultural impact. Due to its highly enigmatic storyline and perplexing cliffhangers, it competes earnestly every week for viewers’ attention.

This is the first time Apple has achieved this milestone. Many shows have shown potential for significant cultural impact but ultimately failed to resonate with audiences.

In the previous year, the platform launched ‘Disclaimer,’ which was the inaugural television series from an Academy Award-winning Mexican director.

Alfonso Cuarón

starring

Cate Blanchett

Given such an illustrious lineup, it’s not surprising that the production premiered at the Venice Film Festival. However, despite Blanchett’s involvement, ‘Disclaimer’ failed to escape becoming another forgettable offering among Apple’s series, landing squarely in the realm of unremarkable content.

Adaptations of popular novels such as ‘Lessons in Chemistry’, ‘Pachinko’, and ‘Shantaram’ failed to impress viewers. Similarly, the highly anticipated follow-up to ‘Band of Brothers,’ titled ‘Masters of the Air,’ did not manage to boost ratings either. Conversely, Apple has frustrated many fans by prematurely canceling shows like the musical-comedy series ‘Schmigadoon!’, which only ran for a brief two seasons—how about renaming it ‘Into the Schmoods’? You cowards!

Film figures

Just as streaming services are hesitant to disclose viewer numbers for their shows on television, it remains challenging to assess the success of a movie’s performance despite having access to box office statistics.

Assassins of the Flower Moon

For instance, it was commercially unsuccessful, earning $158.8 million (€146.7 million) globally compared to its approximately $215 million (€198.6 million) production cost.

Napoleon
, which also enjoyed a theatrical run in late 2023, reportedly generated about $221.4 million (€204.6 million), compared to its production budget of roughly $200 million (€184.5 million). Although trade publications suggested it did not come close to covering its costs, Apple maintained that the movie turned out to be profitable.

The two movies directed by acclaimed filmmakers had an unusual opportunity for streaming service productions as they received theatrical runs before making their way to these platforms several months afterward.

Apple is definitely not prepared to give up on funding high-cost movies. This year, we can expect the highly anticipated
F1
film from
Top Gun: Maverick
Director Joseph Kosinski, along with the latest movies from Guy Ritchie, Spike Lee, and Paul Greengrass.

Worries about the cultural influence of shows released onto streaming platforms aren’t exclusive to these services. Repeatedly, Netflix launches a series with great excitement upon release, but interest fades quickly afterward. ‘Severance,’ having secured a renewal for a third season, might signal a shift for this technology firm’s emerging streaming business. However, it’s uncertain if Apple’s significant investment in streaming will prove successful.